Fuel hike set to affect food prices: Economists

Economists say the latest fuel price increase will have a knock-on effect on the price of food.

This comes after the petrol price increased by a hefty 74 cents per litre at midnight.

Diesel went up by 93 cents per litre.

Illuminating Paraffin saw a 76 cents increase per litre and the retail price of LP Gas rose by R1.01 per kilogram.

The Energy Department has attributed the significant increase to the high price of Brent crude oil.

Economist Mike Schussler says: “The food prices in South Africa are influenced a lot by diesel prices and the reason is that SA does not have waterways and we rely a lot on land transport by road. And something like the price of bread will have a bigger influence around 10 or 11%. The diesel price will have an influence on the price of bread. Meat less so; but food process in general have a large transport component to them and of that diesel makes up quite a big percentage.”

Watch the video below fore related news:

The post Fuel hike set to affect food prices: Economists appeared first on SABC News – Breaking news, special reports, world, business, sport coverage of all South African current events. Africa's news leader..